The impact of import quota and reference price policies on the shallot price and supply in North Sumatera

Abstract

The government policy to limiting shallot import based on quota has an impact on the soaring of domestic shallot price triggering inflation. In order to reduce the inflation rate, the government has changed the basis consideration for import recommendation of shallot horticultural products to be based on a reference price determined by the Minister of Trade. This study analysed the impact of these import quota and reference price policies on the shallot price and supply in North Sumatera. In order to analyse the impact of these government policies, the time series data were analysed using the Compare Means Test, namely the Independent Samples t-Test, so that the differences between before and after the implementation of policies could be estimated. The results showed that the import quota and the reference price policies were not effective in increasing the shallot price at the producer level, but they were effective in decreasing the shallot price at the consumer level, improving the imported shallot price at the consumer level, and also developing the production, harvest area, and productivity of shallot farming.